Global economics, global exchange 2: Video outline.
By Carolina Lista, Rubena St.Louis and Carlos Mayora
On section 1 (0:02 – 1:55)
Main idea: The one and principal reasons for the free trade is the comparative advantage
Key concepts: Comparative advantage: Is when one country produce specializes in the products a low cost ofproduction about the world in comparison other good which have a highcost of productioncompared to the restof the world. Economy of scale: is when unit price decrease with increasing quantities produces
Example
Countries
Products
Reasons for specialization
Pakistan
Rice and mangas
Possess inter-industry trade
Sweden
Paper and steel
Cold weather, forests and green access
On section 2 (1:57 – 3:06)
Main idea: The comparative advantage produce a the good economy, goinghand in hand withthe opportunity cost. Opportunity cost: Is the cost inversion available recourses, in opportunity cost looking for the best investment An example of opportunity cost is when the person decide inverting your saving in a bank which offeredan interest rateof 15%, in change the other bank the offered, the same person, an interest rateof 12%. The person deposit their savings in the bank offered the lowest interest rate.
Complete the chart with the corresponding information.
Country
No. jeans produced
No. cars produced
Opportunitycost
China
6% produce jeans
6% produce car
The opportunity cost in china is about one jeans and one car
United State
10% produce jeans
21% produce
The opportunity cost in United Estate is about one car and two cars
United State_ has a comparative advantage in Automobiles
China_ has a comparative advantage in __ Jeans
On section 3 (3:08 – 4:49)
Main idea of: talk about comparative advantage, claiming that countries specialize in exporting goods that require large amounts of production factors in the comparatively more abundant
Key concepts:
Hechscher and Ohlin theory: Tries to explain how international trade flows.
Major factors in labour productivity are:
1. Skills of the workers
2. Machinery the workers have to use
3. Organization of the frim
Example:
Video outline.
By Carolina Lista, Rubena St.Louis and Carlos Mayora
On section 1 (0:02 – 1:55)
Main idea: The one and principal reasons for the free trade is the comparative advantage
Key concepts:
Comparative advantage: Is when one country produce specializes in the products a low cost ofproduction about the world in comparison other good which have a highcost of productioncompared to the restof the world.
Economy of scale: is when unit price decrease with increasing quantities produces
Example
Main idea: The comparative advantage produce a the good economy, goinghand in hand withthe opportunity cost.
Opportunity cost: Is the cost inversion available recourses, in opportunity cost looking for the best investment
An example of opportunity cost is when the person decide inverting your saving in a bank which offeredan interest rateof 15%, in change the other bank the offered, the same person, an interest rateof 12%. The person deposit their savings in the bank offered the lowest interest rate.
Complete the chart with the corresponding information.
United State_ has a comparative advantage in Automobiles
China_ has a comparative advantage in __ Jeans
On section 3 (3:08 – 4:49)
Main idea of: talk about comparative advantage, claiming that countries specialize in exporting goods that require large amounts of production factors in the comparatively more abundant
Key concepts:
Hechscher and Ohlin theory: Tries to explain how international trade flows.
Major factors in labour productivity are:
1. Skills of the workers
2. Machinery the workers have to use
3. Organization of the frim
Example:
(Example)